To the Members of
SUPER SALES INDIA LIMITED
Report on the Audit of Standalone Financial Statements
We have audited the standalone financial statements of SUPER SALES INDIA LIMITED("the Company") which comprise the Balance Sheet as at March 31 2020 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Cash Flow Statement and for the year then ended and notes tothe financial statements including a summary of the significant accounting policies andother explanatory information. (hereinafter referred to standalone financial statements).
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ["the Act"] in the manner so required and give atrue and fair view in conformity with the Indian Accounting Standards prescribed underSection 133 of the Companies Act 2013 read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2020 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on thestandalone financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report. We have fulfilled theresponsibilities described in the Auditor's responsibilities for the audit of theStandalone financial statements section of our report including in relation to thesematters.
|S.No Key Audit Matter ||Response to Key Audit Matter |
|1 Evaluation of uncertain tax positions ||Principal Audit Procedures |
|The Company did not have material uncertain tax positions other than uncertain position of statutory dues of electricity generation tax and Income Tax under dispute which involves significant judgement to determine the possible outcome of these disputes. ||We obtained details of completed tax assessments and demands received from management. We analysed the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes. We considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions. Additionally we considered the effect of new information in respect of material uncertain tax positions and other uncertain position of statutory dues of electricity generation tax and Income tax under dispute to evaluate whether any change was required to management's position on these uncertainties |
|2 Recoverability of Income tax assets and ||Principal Audit Procedures |
|Receivables from Government authorities || |
|As at March 31 2020 non-current assets in respect of Income tax assets to the extent of Rs. 326.60 lakhs and Receivable from government authorities to the extent of Rs. 1007.38 lakhs are outstanding. ||We analysed and reviewed the nature of the amounts recoverable the sustainability and the likelihood of recoverability upon final resolution of the income tax assets representing excess taxes paid over the actual expected tax liabilities and of the amounts receivable from government authorities which includes input tax credits eligible for set off and amounts recoverable from Customs authorities and as such we considered and concluded that these recoverables are sustainable upon final resolution. |
|3 Revenue from contracts with Customers ||Principal Audit Procedures |
|Ind AS 115 on Revenue from Contracts with customers establishes a comprehensive framework for determining whether how much and when revenue is recognized. This involves certain key judgements relating to identification of distinct performance obligations determination of transaction price of identified performance obligation the appropriateness of the basis used to measure revenue recognized over a period etc. The company has revenue from contracts with customers in the form of receipts towards commission and erection charges under selling agency arrangement with machinery manufacturer including erection of machinery. Accordingly revenue recognition relating to the above was determined as a key audit matter in our audit of the standalone financial statements. ||We assessed the company's revenue recognition policy as per Ind AS 115 and the design and operating effectiveness of internal controls related to revenue recognition relating to commission and erection charges income. Our audit procedure included making sample tests of individual transactions relating to commission and erection charges revenue and whether such revenue was recognized as per the stated accounting policy adopted pursuant to Ind AS 115. It was concluded that Ind AS 115 has no impact on the existing revenue recognition policies relating to commission and erection charges revenue. |
|4 Assessment of carrying value of Investments ||Principal Audit Procedures |
|The Company has invested in listed equity instruments. The evaluation of their fair values is considered as a key audit matter given the relative significance of the value of investments and the fluctuations in their fair values. ||Our audit procedures in relation to assessing the carrying value of these investments include ascertaining from relevant external sources that the equity instruments are carried at fair value as on 31st March 2020. Due to general market fluctuations there has been significant fair value reduction in these investments. We agree with the management's evaluation of the fair values as at the balance sheet date read with the disclosures by the management. |
We have determined that there are no other key audit matters to communicate in ourreport.
Information Other than the standalone Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report CorporateGovernance and Shareholder's Information but does not include the standalone financialstatements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
Responsibilities of Management and those charged with governance for the standaloneFinancial Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance (including other comprehensive income) cash flows andchanges in equity of the Company in accordance with the Indian Accounting Standards (INDAS) prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgements and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
The Board of Directors are also responsible for overseeing the company's financialreporting process.
Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements. We communicate withthose charged with governance regarding among other matters the planned scope and timingof the audit and significant audit findings including any significant deficiencies ininternal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143 (11) of the Act we give inAnnexure "A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.
2. As required by Section 143 (3) of the Act based on our audit we report that: a) wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit;
b) in our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books; 56
c) the balance sheet the statement of profit and loss (including other comprehensiveincome) statement of changes in equity and the cash flow statement dealt with by thisreport are in agreement with the books of account;
d) in our opinion the aforesaid Standalone financial statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act read with Rule 7 of Companies(Accounts) Rules 2014.
e) on the basis of the written representations received from the directors of theCompany as on March 31 2020 taken on record by the board of directors none of thedirectors are disqualified as on March 31 2020 from being appointed as a director interms of Section 164 (2) of the Act;
f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure "B" and
g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended: In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Companies Act 2013.
h) with respect to the other matters to be included in the auditors' report inaccordance with rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:
i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements - Refer Note No. 35 to the standalonefinancial statements.
ii The Company does not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses
iii There has been no delay in transferring amounts required to be transferred to theinvestor education and protection fund by the Company.
ANNEXURE - "A" TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in Paragraph 1 under "Report on Other legal and regulatoryrequirements" section of our report to the members of SUPER SALES INDIA LIMITED ofeven date).
We report that
1. In respect of its Fixed Assets: a. The Company has maintained proper records showingfull particulars including quantitative details and situation of fixed assets [PropertyPlant and Equipment]. b. As explained to us fixed assets have been physically verified bythe management at regular intervals in accordance with a programme of verification whichin our opinion provides for physical verification of all the fixed assets at reasonableintervals having regard to the size of the company and nature of its assets. According tothe information and explanations given to us no material discrepancies were noticed onsuch verification. c. According to the information and explanations given to us and therecords examined by us the title deeds of immovable properties are held in the name ofthe Company.
2. In respect of its inventories:
As explained to us physical verification of inventories has been conducted atreasonable intervals by the management during the year and no material discrepancies werenoticed as compared to the book records.
3. The company has not granted any loan secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013 during the financial year and hence sub-clauses(a) to (c) of clause (iii) of the Order are not applicable to the company.
4. The Company has not granted loans or made investments or given guarantees andsecurities during the year and hence compliance with Section 185 and Section 186 are notapplicable.
5. The company has not accepted any deposits from the public during the year to whichthe provisions of sections 73 to 76 of the Act are applicable and as such clause 3(v) ofthe Order is not applicable.
6. We have broadly reviewed the cost records maintained by the company specified by theCentral Government under sub-section (1) of Section 148 of the Companies Act 2013 asapplicable to the company and are of the opinion that prima facie the specified costrecords have been made and maintained. We have not however made a detailed examinationof the cost records with a view to determine whether they are accurate or complete.
7. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company in respect of the statutory dues: a. The Companyis regular in depositing undisputed statutory dues including Provident Fund Employees'State insurance Income tax Sales Tax Service Tax Goods and Service Tax duty ofcustoms duty of excise value added tax and any other statutory dues with theappropriate authorities during the year. According to the information and explanationsgiven to us no undisputed amounts payable in respect of the aforesaid dues wereoutstanding as at 31st March 2020 for a period of more than six months fromthe date they became payable. b. According to the information and explanations given tous the details of disputed statutory dues that have not been deposited on account ofdispute is as under:
|Name of the Statute ||Nature of the dues ||Amount [Rs. in Lakhs] ||Amount paid/ adjusted [Rs in Lakhs] ||Period to which the amount relates ||Forum where dispute is pending |
|Electricity Act ||Self Generation Tax ||202.45 ||Nil ||2011-2019 ||Supreme Court |
|Income Tax Act 1961 ||Income tax and interest ||24.61 ||Nil ||A.Y. 2017-18 ||Commissioner of Income Tax (Appeals) |
8. In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of loans or borrowings to any financialinstitution bank government or dues to debenture holders.
9. In our opinion and according to the information and explanations given to us theCompany has utilized the money raised by way of term loans for purposes for which theywere raised. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year.
10. To the best of our knowledge and belief and according to the information andexplanations given to us during the course of our examination of the books and records ofthe company carried out in accordance with the auditing standards generally accepted inIndia no fraud on or by the company was noticed or reported during the year that causesthe IND AS financial statements to be materially misstated.
11. According to the information and explanations given to us and based on ourexamination of the records of the company the Company has paid / provided for managerialremuneration during the year in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Companies Act 2013.
12. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly clause 3(xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the IND AS financial statements as required by theapplicable accounting standards.
14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly clause 3(xv) ofthe Order is not applicable.
16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
Annexure - "B" to the Independent Auditors' Report
(Referred to in Paragraph 2(f) under "Report on Other legal and regulatoryrequirements" section of our report to the members of SUPER SALES INDIA LIMITED ofeven date).
Report on the Internal Financial Controls over Financial reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of SUPER SALESINDIA LIMITED as of 31st March 2020 in conjunction with our audit of theStandalone financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Board of Directors of the company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India ('ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects. Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial controls system over financialreporting and their operating effectiveness. Our audit of internal financial controls overfinancial reporting included obtaining an understanding of internal financial controlsover financial reporting assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the standalone financial statementswhether due to fraud or error. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the Company'sinternal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of standalone financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
|For M/s. Subbachar & Srinivasan ||Coimbatore |
|Chartered Accountants ||25.05.2020 |
|Firm Registration No.004083S || |
|T. S. V. Rajagopal || |
|Partner Auditor || |
|Membership No: 200380 || |
|UDIN: 20200380AAAAFA5233 || |